Introduction HRA

• Expectations???
Introduction
• Arguably the most practical tool and greatest potential for
organizational management is the emergence of predictive analytics.
-FITZ-ENZ AND MATTOX II (2014)
• Analytics present a tremendous opportunity to help organizations
understand what they don’t yet know… By identifying trends and
patterns, HR professionals and management teams can make better
strategic decisions about the workforce challenges that they may
soon face.
-HUSELID (2014)
• An important (if not essential) aspect of what should be included in
the offering of any sophisticated HR function.
• There has been some speculation about what is the best name for the
specialism (see Edwards, 2018), with some preferring workforce
analytics or people analytics to HR analytics.
Plot of internet search interest of HR analytics subject words from
2004–18 (graph produced by Paul Van der Laken, 2018, p 18)
• There have been calls by some to ensure that the HR function moves
away from introducing ‘copycat practices’ to ‘promoting practices
and advising the organization’s leadership’ through an assessment of
available data and research linked to the particular issue at hand
(Rousseau and Barends, 2011)
Understanding the need (and business case) for mastering and utilizing predictive HR analytic
techniques

• HR information and management information (MI) teams currently spend considerable time and effort
producing descriptive report after descriptive report – monitoring them, comparing them across
geographical boundaries and over time periods, but often doing very little else with the report other than
producing it – again and again.
• will generally only present a picture or ‘snapshot’ of what is occurring in the organization at that particular
time.
• Descriptive reports do very little more than describe what is happening; they lack the capability to help
understand and account for why things are happening in the organization.
• The analysts generally fail to interrogate the data fully for other possible explanatory factors (which can help
clarify why something might be happening)
• Descriptive reports do not in any way help us to make predictions about what we might find in the future
For example,
For example,
• If we can identify predictors of things like high performance, productivity increases, staff retention,
higher employee and team engagement, then this information gives managers a good steer as to what
strategic activities to invest in to help lever important employee outcomes.
• Once that sufficient people-related data has been collected over time, it is then possible to analyse patterns
and trends based on this historical data.
• HR analytics therefore offers the opportunity to help model and analyse historical data and interrogate
patterns in order to help understand causal factors.
• Knowing what has happened in our organization and having evidence for why things have happened, in
particular what the drivers are of certain behaviours within our organization, will undoubtedly help us to
make better decisions.
HR Analytics
HR Analytics
• HR analytics refers to the data and information gathered and analysed
by a human resources team in order to better understand and
improve the organisation's HR functions.
• Employee data is analysed to aid in the measurement of metrics such
as turnover, learning and development, onboarding and
compensation
• The aim of HR analytics is to make sense of this data and translate it
into a valuable business insight.
• Sources of HR DATA?
Useful HR-related data is made up of many different types of information
and might include the following:
• skills and qualifications;
• measures of particular competencies;
• training attended;
• levels of employee engagement;
• customer satisfaction data;
• performance appraisal records;
• pay, bonus and remuneration data.
Current state of HR analytic capabilities and professional or academic training

• There now seems to be a much greater availability of HR/people analytics training providers that service
the professional HR community.
• In 2016 there was scarcity of this, but a number of academic institutions are now including HR/people
analytics modules in their teaching.
• There has also been a general growth in data analytics and business analytics academic programmes
available.
BUT
• The vast majority of people who enter the HR profession do not have the required skills to be able to carry
out any sophisticated HR analytics
• Even when students have come from a business or management degree, such students can often sidestep
statistics (almost) completely.
• HR may have been seen by some students as a ‘safe haven’ from numbers.
• Recent research, however, is beginning to show how important analytic competencies are in the HR
profession. Kryscynski et al (2017) showed a positive relationship between ratings of analytic competencies
and ratings of performance from a number of stakeholders.
• Minbaeva (2017) reports on a Deloitte (2015) survey that indicated 75 per cent of companies surveyed
indicated ‘human capital analytics’ was important for business performance but only 8 per cent had strong
capabilities.
• A recent CIPD survey of the state of HR analytics in the profession showed considerable geographical
variation in HR capabilities with advanced analytics, with only 21 per cent of respondents stating that they
had confidence in conducting advanced analytics (and only 6 per cent indicating that they use these
regularly).
• Whether the HR professional is a generalist, a specialist in one particular area (such as talent, diversity or
engagement), or the head of HR for a large multinational organization,
• the ability to identify and understand trends and patterns, to take bias and gut instinct out of decision
making, and to predict organizational challenges
• is something that will set them apart in becoming a credible, high-performing HR professional (helping the
organization to be more successful).
• By systematically going through this course and the exercises, we will try to increase our capabilities and
learn many things that will help us to develop understanding of HR analytics world.
• According to the 'EMEA Rise of Analytics Report, 2017',  71% of
businesses consider HR analytics to be a key priority, and 40% plan to
invest in HR analytics in the coming years.
• https://business.linkedin.com/content/dam/me/business/en-us/talen
t-solutions/talent-intelligence/workforce/pdfs/Final_EMEA_Rise-of-A
nalytics-Report.pdf
Types of Analytics
Types of Analytics
https://searchbusinessanalytics.techtarget.com/post/How-predictive-
and-prescriptive-analytics-impact-the-bottom-line#:~:text=Predictive
%20analytics%20leverages%20AI%20and%20machine%20learning
%20algorithms%20to%20build%20predictive
%20models.&text=Prescriptive%20analytics%20goes%20beyond
%20predicting,action%20for%20each%20specified%20outcome.
Which Analytics to use?
• Based on the problem at hand, the appropriate solution can be
arrived at using each of the four buckets of analytics
HR Measurement: The LAMP model
HR Measurement
Hypothesis-led Problem Solving
• EX: Training Impact on Sales